Alabama · Ala. Code §§40-1-3, 40-5-7, 40-5-9, 40-5-12, 40-11-4Alabama property taxes at closing: October 1, January 1 and the superior lien

Unless the law provides otherwise, Alabama taxes become due and payable on October 1 each year and become delinquent if not paid before the following January 1; they are due at once when a taxpayer is moving from the county, going out of business or disposing of substantially all taxable property in the county (Ala. Code §40-11-4). From October 1 of each year, when property becomes assessable, the state has a lien on every parcel for the taxes assessed against its owner, and the county and, within city limits, the municipality have like liens; these liens are superior to all other liens, rank in that order, and continue until the taxes are paid (§40-1-3). After January 1, the tax collecting official sends a written demand by first-class mail to delinquent taxpayers, with a $5 demand fee for each property (§40-5-7). Delinquent ad valorem taxes bear interest at 12% a year, added to and collected as part of the taxes (§40-5-9). A purchaser, lienholder or mortgagee of real estate included in an assessment may discharge the tax lien by paying the actual amount of taxes due to the county's tax collecting official (§40-5-12).